This clause is applicable to all type of deductee .The Maximum TDS rate is applicable in following case
- if pan is not provided by the deductee .[section 206AA(1)]
- If pan provided by the the deductee is invalid.[section 206AA(6) read with 206AA(1)]
Now ,the question is here ,how can deductor can check correctness of the pan ? There is no straight way to verify the pan ,But I have Listed few thing hereunder which may be helpful for deductor .
- First Thing the deductor should do is that demand photocopies of the pan card from regular service providers , agents etc.
-
If photocopies has not been provided by the deductee and Just pan (number) is provided then verify the structure of pan
- Pan must be of 10 digits .
- First five digit and tenth digit must be alphabet(A_Z)
- Sixth to Ninth digit must be Number (0,1,2,3,4,5,6,7,8,9)
-
Forth digit of Pan represent Assessee status,and if a Partnership firm provides pan with forth digit as P or C then it means the pan is incorrect
- C — Company
- P — Person
- H — Hindu Undivided Family (HUF)
- F — Firm
- A — Association of Persons (AOP)
- T — AOP (Trust)
- B — Body of Individuals (BOI)
- L — Local Authority
- J — Artificial Juridical Person
- G — Govt
- Fifth Digit of Pan represent Surname as per Data filled in the application in case of Individual assessees and in other case first name .
CAclubindia
